News Archive for November 27, 2012

U.S. to Press for Air-Cargo Fire Safety
Federal air-crash investigators are expected to ratchet up their campaign to get fire-suppression systems installed in the bellies of all U.S. cargo jets, according to people familiar with the details.

Executives' Luck In Trading Own Stock
A WSJ examination of executives who traded their own company's stock just before they made news finds that far more recorded gains than saw the stock move against them.

South Korea Trade Surplus Narrows
South Korea's current-account surplus narrowed slightly in October, but the surplus for 2012 so far has already surpassed the Bank of Korea's full-year forecast, lending further support for the won.

Taiwan Fix is Way Out West
A leadership in China with a track record of building Taiwan ties, and a pro-China president in Taiwan should strengthen cross-straits economic relations. But that won't be enough to put a rocket under Taiwan's growth.

They All Scream for Edvard Munch, but Oslo Can't Satisfy Demand
The Munch Museum has thousands of the artist's drawings and paintings. But the museum's building is down at the heels, and plans for a new showplace have hit a snag.

Euro Zone Makes Good on Greek Promise
At last, the euro zone has found a Greek formula that should allow it to disburse aid to the beleaguered nation. It shouldn't have taken this long, and this doesn't mark the end of the Greek debt drama.

Myanmar Generates Real-Estate Interest
As Myanmar escapes from years of sanctions that largely locked it out of the global economy, the country's real-estate market is among the first sectors to attract serious investor attention.

Oracle of Omaha Channels Astaire
Warren Buffett, the billionaire business magnate and the subject of Carol Loomis's new book "Tap Dancing to Work: Warren Buffett on Practically Everything, 1966-2012," wears many hats. Dancer is not one of them.

Gambling Gatsby-Style in Florida
Dice were particularly apropos over the weekend at the fifth annual Paradise Grand Casino, a gambling night benefit for the Paradise Fund, an organization that raises money for various children's charities.

Stop-Frisk Trial Avoids Jury
A group of New York City residents suing the city over an anti-trespassing program withdrew their request for damages on Tuesday, paving the way for a trial that will be decided by a judge rather than a jury.

Traders Stalk a Rally for U.S. Corn
Prices soared this summer as drought destroyed crops, sending buyers abroad. But now, U.S. corn prices have fallen and supplies elsewhere are drying up, prompting some traders to bet on a rebound.

Race, Religion Used as Basis for an Attack
A City Council candidate has launched an effort to prevent a potential rival, whom he describes as white and Jewish, from trying to "sneak" into office, saying only a black or Latino person should represent the district.

The New Clashing With the Newer
A property fight in the Bowery is more complicated than the usual neighborhood squabble over a new building. It pits the old against the new, and the new against the newer.

New Law Will Shield Airlines
Obama signed a law that shields U.S. airlines from having to comply with a greenhouse-gas standard adopted by the EU, ratcheting up a conflict that reflects U.S. concerns about European environmental measures.

Waiting to Work Again After Storm
Some employees whose workplaces were damaged by Sandy have adapted by working from home or relocating to other buildings. But others face a harsher reality: being out of work as employers rebuild.

A Closer Look at Cuomo's Sandy Stats
In his hunt for billions in federal aid, Gov. Andrew Cuomo has used some strong rhetoric, saying that in many ways Sandy was "more impactful" in New York than hurricanes Katrina and Rita were in Louisiana.

Japan's Spat With China Hurts Tourism
The economic fallout from a territorial dispute between China and Japan has delivered a sharp setback to a carefully crafted campaign to draw Chinese visitors as a key element of Japan's new growth strategy.

Soups and Stone Pots
Customers can get their Korean barbecue fix at Han Joo. This St. Marks outpost opened last month. It has the basically same authentic offerings as the Flushing location, but with a more Western atmosphere.

Windows to Produce
Ralph Gardner Jr. says there is one gift that will be the cause of vast disappointment and perhaps even an unattractive crying fit if he doesn't find it under the tree Christmas morning: a Windowfarm.

UPS Aims to Reduce Dangers of Cargo-Plane Fires
UPS disclosed it has developed and is testing several new technologies, including a new class of fire-retardant containers to hold packages, that promise to keep fires from raging inside the bellies of cargo jets.

Lynch to H-P: Spell It Out
HP's latest drama took another twist Tuesday, when the former chief executive of Autonomy published a letter calling for H-P to specify its allegations of accounting improprieties.

Cnooc and Nexen Reapply for U.S. Merger Approval
Cnooc and Nexen have resubmitted their application for review by the U.S. government of Cnooc's $15.1 billion takeover deal for the Canadian energy producer.

Monster Beverage Receives Boost From FDA's Letter
The FDA said it is taking a closer look at the health effects of energy drinks, but shares of Monster Beverage rose 13% as fears of a broad clampdown on the fast-growing drink category eased.

Wunderkinds and Dinosaurs
This week's Pop Scene calendar leads off with Dinosaur Jr., which will mark the 25th anniversary of its album 'You're Living All Over Me' at Terminal 5, plus Esperanza Spalding at City Winery, Holly Herndon at MoMA PS1 and more.

Petrobras Looks to Sell Houston Area Refinery
Petroleo Brasileiro has enlisted Citigroup to sell its Houston area refinery as the Brazilian state-run oil company continues to shed assets to fund offshore drilling back home.

Tobacco Firms Told to Admit Deception
A federal judge on Tuesday ordered tobacco companies to say in product warnings that the industry deceived the public about the dangers of smoking and manipulated tobacco products to increase addiction.

Chinese Movie Studios Seek IPOs
State-owned China Film and Shanghai Film applied to list shares on Shanghai's stock exchange as Beijing champions the growth of a homegrown film industry to rival Hollywood.

The Fiscal Cliff Isn't the Only Disaster Looming in D.C.
The Washington Wizards will eventually find their way into the win column, but 0-19 isn't out of the realm of possibility. Here are some factors—not all scientific—working against them.

Afghans Pin Energy Hopes on Local Gas
In an effort to promote Afghan energy independence and draw investment, a Pentagon task force has put up $2.9 million to convert taxis in the northern Afghanistan city of Sheberghan to run on compressed natural gas, and to set up a CNG filling station to support the fleet.

Housing Market Propels Economy
The U.S. housing market, which plunged the economy into recession five years ago and was a persistent drag on the recovery, is now a key economic driver at a time when other sectors are slowing.

CEOs Flock to Capital to Avert 'Cliff'
The last time Washington wrangled over the deficit, in the summer of 2011, U.S. businesses watched nervously from the sidelines, a decision that many came to regret. This time, CEOs are flocking to the capital to make their voices heard.

Problem: There's Too Much Steel
This year, steel mills around the world have a production capacity of 1.8 billion tons but will take orders for only 1.5 billion tons. And instead of consolidating, the industry is building still more capacity.

ConAgra Wins Brand X
ConAgra, with its $4.95 billion deal to buy Ralcorp, is poised to be the largest maker of private-label foods in the U.S., a segment it believes will grow as retailers use in-house brands to cater to frugal consumers.

Angry Birds Flock Rises in Finland
An Angry Birds export flock is arising from the popular videogame, leading Finnish companies making candy, soda, toys and playground equipment to cash in on the brightly covered characters.

Banks Feel Currency Pinch
Banks are seeing a steep decline in profits from currency trading, as once-lucrative businesses are eroded by the rise of electronic trading and the proliferation of new platforms.

France's Klépierre Takes a U.S. Tack
Simon Property Group is getting good marks for its handling of French-based Klépierre less than a year after buying a controlling stake in one of Europe's biggest retail property owners.

House Bill Launches New Immigration Debate
It pits advocates for a broad immigration overhaul, notably Democrats and the White House, against Republicans who favor a narrower approach for high-tech and engineering firms struggling to attract educated workers.

Mexico's New Leader Tries to Shift Dynamic
Enrique Peña Nieto takes office with a clear goal for his six-year presidential term: Get people to see the country less as a killing ground and more as a dynamic economy.

Small-Town Maul
New York investor David Lichtenstein's bet on four small-town malls didn't pan out, leading him to forfeit the properties to his mortgage holders in 2009. It now appears the deal also was a big loser for investors in the malls' $73.9 million securitized mortgage.

Baseball Union Pioneer Miller Dies
Marvin Miller, a veteran union negotiator who revolutionized the relationship between sports teams and their athletes by securing free agency for Major League Baseball players, dies at 95.

EU Mulls Rules on Credit Raters
European Union officials and lawmakers passed new rules on Tuesday aimed at making it easier for investors to sue credit-rating firms like Standard & Poor's Ratings Services and Moody's Investors Service.

Heightened Alarm Over Low River
Companies that ship and carry goods along a drought-stricken stretch of the Mississippi River are asking for an emergency declaration to dynamite part of the riverbed to maintain commercial traffic.

Yuan Value Is Too Low, U.S. Says
The U.S. Treasury Department repeated that China's currency remains "significantly undervalued" but declined again to label Beijing a currency manipulator, avoiding a public slap that could disrupt diplomatic relations between the economic powers.

France Escalates Steel Fight
A dispute pitting France against the world's largest steelmaker escalated after President Hollande threatened to nationalize a plant that owner ArcelorMittal wants to partially close.

Greek Debt Plan Relies on Rosy Outlook
A long-awaited deal cobbled together by euro-zone finance ministers gives Greece a rough outline for cutting its mountain of debt, but the plan threatens to be derailed if the country's economy doesn't emerge from recession in two years.

Photos of the Day: Nov. 27
In today's pictures, a boy carries a goat in Congo, a man walks through snow on the second day of firearm deer season in Pennsylvania, a man exhumes a grave in Singapore, and more.

El Futuro Confronts the Republicans
Despite Leslie Sanchez's optimism ("The GOP's Latino Opportunity," op-ed, Nov. 19), the "Latino problem" is still a problem. At issue is whether immigrants from Mexico will vote as a block in the U.S.

The Colorado River, Cotton and Insects
In his review of Wade Davis's "River Notes," Gerard Helferich states that the Colorado River wends its way through Wyoming, Utah, Colorado, New Mexico, Arizona, Nevada and California ("Cry Me a Tributary," Bookshelf, Nov. 23). It does not.

The States Can Fix the Deficit Issue
In regard to James A. Baker III's Nov. 16 op-ed "How to Get to a Grand Bargain": Mr. Baker says to start with "a mechanism guaranteeing that spending cuts actually follow tax increases."

Washington Is Passing the Mortgage Mess to the Fed
Vern McKinley's Nov. 20 op-ed "The Fannie Mae 'Wind Down' That Isn't" rightly points out that the on-balance sheet ownership of mortgages is just a small part of total risk exposure. Thus the Dodd-Frank requirement to wind down on-balance sheet mortgage holdings is toothless.

A New Definition of Marriage Intrudes on Core Beliefs
In regard to the Nov. 21 op-ed "Conservatives and the Politics of Marriage: The Wisdom of Upholding Tradition" by Sherif Girgis, Ryan T. Anderson and Robert P. George and "Making the Same-Sex Case" by Ken Mehlman:

OECD Warns on Global Economy
The world economy is at risk of a fresh contraction if euro-zone and U.S. policy makers fail to restore confidence by resolving their fiscal problems, the Organization for Economic Cooperation and Development warned.

Egyptians Rally Against President
Tens of thousands of Egyptians descended on central Cairo to challenge new claims to power by President Mohammed Morsi and his Islamist allies, forcing the new leader to manage popular discontent that echoed the protests against the strongman who preceded him.

Why German Car Stocks Outpace Their European Rivals
Sales in the home market haven't cratered as they have elsewhere in Europe. The risk is whether the pricing pressures in the mass-market segment become stronger in luxury cars as well.

France's UMP Party Seeks Resolution
The warring factions in France's major opposition party seemed closer to a compromise Tuesday evening, along lines proposed by former French President Nicolas Sarkozy to put an end to the crisis threatening its future.

Groupon board members are discussing making leadership changes at the daily deals company, including bringing in a more experienced CEO to take over for co-founder Andrew Mason, All Things Digital reports.

Extension of FDIC Program Gains Key Backer but Hurdles Loom
The top Senate Democrat is backing an extension to an FDIC program that provides unlimited guarantees for $1.4 trillion in bank deposits, but some Republicans see the program as extension of the financial-crisis bailouts.

Congo Rebels to Withdraw From Goma
Congolese rebels are expected to start withdrawing their troops from Goma, marking a major breakthrough for regional leaders who have pulled together to prevent the conflict in eastern Congo from escalating.

Spain Sells Bank in Step Toward Cleanup
The Spanish government struck a deal to recapitalize and sell nationalized Banco de Valencia to Caixabank, a step forward in the EU-financed cleanup of the country's banking sector.

Pace of Deforestation in Brazil's Amazon Falls
Deforestation in Brazil's Amazon rainforest slowed dramatically last year as the government stepped up efforts to detect and halt illegal farming and logging, though some environmental groups warn that recent changes to the law protecting the forest might slow further progress.

The Tea Party, Version 1.0
Many American colonists joined the Sons of Liberty—lawyers and merchants as well as writers and tavern organizers. Robert K. Landers reviews Les Standiford's "Desperate Sons."

Ex-Level Global Analyst Testifies on Dell Secrets
A key government witness testified Tuesday that he passed on corporate secrets about Dell's financial outlook to his boss at hedge-fund firm Level Global.

Corning Raises 4Q View of Glass Sales
Corning credited stronger-than-expected demand in China and North America for a raised view of sales of television panels and hand-held specialty glass in the fourth quarter.

Chrysler Revs Up Special Editions
Chrysler is producing more special edition vehicles, like the Glacier edition 300 sedan, "man van" Caravan and Lil Red Express pickup, as it seeks to keep its sales momentum going.

Not Your Average Tuesday
Added to the mix of weekdays preceded by descriptors this month—"Black Friday" and "Cyber Monday," among them—is "Giving Tuesday," the first-annual, unofficial holiday devoted to philanthropic endeavors.

Who is Who in SAC Capital Probe
For years, authorities conducting insider-trading probes have investigated the activities of hedge-fund giant SAC Capital Advisors. SAC Capital founder Steven A. Cohen never has been charged. But several current and former employees have been charged as part of the broad insider trading investigation. Here is a look at the former and current SAC Capital employees whose names have come up during the probe.

Simon & Schuster Enters Pact With Self-Publisher
Simon & Schuster is licensing on of its trademarks to Author Solutions, a company that facilitates self-publishing. The arrangement will give Simon & Schuster an opportunity to spot fast-selling self-published titles.

St. Louis Schools Chief Finds a Formula
While rising student test scores in Washington, D.C., and New York have gotten attention, the quiet turnaround in St. Louis is more typical of the unheralded progress in places like Boston, Houston and San Diego.

Turkey Moves to Strip Kurdish Lawmakers' Immunity
Turkey's parliament took the first step to strip some Kurdish lawmakers of their immunity, a move likely to further inflame tensions between Ankara and the country's Kurdish minority.

Chinese Developers Try the U.S.
Xinyuan Real Estate, a Chinese company listed on the New York Stock Exchange, is beginning to develop residential property in the U.S., hoping to tap into the hot demand among Chinese investors for U.S. apartments.

Japan's DPJ: Will Maintain Pressure on Central Bank
Japan's ruling party vowed in its election platform to keep up pressure on the Bank of Japan to continue easing monetary policy and achieve an average nominal growth rate of 3% by fiscal 2020.

Singapore Strike Reflects Dual Strains
A rare protest over wages in Singapore by a group of bus drivers recruited from China has caused a public stir, highlighting the city-state's heavy reliance on migrant workers as tensions rise over the influx of foreign labor.

Gloom Over China Stocks Deepens
The fall in the Shanghai Composite, already one of the world's worst performers this year, comes even as China's economic outlook brightens after nearly two years of slowing growth.

Markets Muted After Greek Deal
European stocks eked out small gains, but the euro lost ground as initial relief over a deal to give Greece more cash was tempered by worries that euro-zone finance ministers are merely kicking the can down the road.

Advisers Seek to Decode 'Fiscal Cliff' Debate
Financial advisers, just like everyone else who follows Wall Street and Washington, are reading the tea leaves as they try to predict whether taxes will increase in 2013.

Durable-Goods Orders Hold Steady
Durable-goods order were nearly unchanged in October at $216.95 billion, weighed down by declining demand for autos and aircraft, but the data could otherwise signal a manufacturing rebound. Consumer confidence, meanwhile, rose this month.

China's ICBC Steps Up Overseas Push
China's largest bank by assets, ICBC, is opening new operations in the Middle East, Europe and South America this week as the nation's big state-controlled lenders look to bolster their foreign presence to drive growth.

Hungary Cuts Key Rate
The Hungarian central bank cut the country's policy rate to 6% from 6.25%, continuing a monetary easing cycle that began in August but which drew criticism from the Organization for Economic Cooperation and Development.

CREDIT VIEW
EFSF Bond Delay Shows Ratings' Omnipresence
The one-week delay in the European Financial Stability Facility's new bond sale highlights that credit ratings remain an integral part of the financial system, whether policy makers like it or not.

Anti-Nuclear Coalition Steps Into Japan Election
A high-profile prefectural governor has emerged as a rallying point for nuclear-power opponents trying to put their issue on the agenda in Japan's general election next month.

Aston Martin Owner to Keep Control
The Kuwaiti finance house seeking to sell part of Aston Martin Lagonda needs to retain a majority stake in the U.K. luxury sports car maker to avoid upsetting the company's capital structure and triggering a change-of-control covenant.

Former MLB Union Head Miller Dies at 95
Marvin Miller, the union leader who created free agency for baseball players and revolutionized professional sports with multimillion dollar contracts, died Tuesday.

Muddy Waters Report Criticizes Olam
Short-seller Carson Block released a long-awaited report on Olam International, accusing the Singapore commodities trader of incompetence and saying it was running a high risk of failure.

New Zealand Hopes for Tourism Boost From 'Hobbit'
New Zealand is hoping the return of J.R.R. Tolkien's characters to the silver screen will ignite a tourism boom after years of declining visitor numbers.

Most Households Face 'Fiscal Cliff'
Almost all U.S. households would take a financial blow next year—and low-income families would be among the hardest hit—if the White House and Congress fail to solve the "fiscal cliff."
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Hollywood History in Beverly Hills
This 1930 Spanish-style home once belonged to Hollywood funnyman Joe E. Brown. Tinsel town charms, like a former film projection room and a suede-upholstered bedroom, are included.

Olympics Spur U.K. Spending
U.K. household spending posted its biggest increase in more than two years in the third quarter, showing the effect the Olympic Games had on spending patterns and underscoring concerns the robust growth may not be sustained.

India Considers Vote on Retail FDI
India's federal government indicated that it may be open to a vote on a recent decision to allow foreign companies to run supermarkets in the country, in an attempt to end a standoff in parliament.

FX Call 1315 GMT News Briefing
Markets have given a choppy reception to the Greek bailout, with EUR bid in Asia on the news, offered in Europe but ending the morning session little changed from late US levels seen Monday before the announcement was made. The world economy is at risk of a fresh contraction if euro-zone and U.S. policy makers fail to restore confidence by resolving their fiscal problems, the Organization for Economic Cooperation and Development warned Tuesday. Traders in euro-zone government bond markets breathe a sigh of relief after Greece's creditors strike a deal to cut the country's debt pile and unlock its next tranche of assistance, giving a boost to the region's riskier bonds.

India Shares End Higher
Indian shares closed at their highest level in over two weeks Tuesday after Moody's reiterated its stable outlook on the country's rating and on signs that a standoff between the government and the opposition may end soon.

FX GLOBAL CALL: Our Take on the Day's Big FX News
The FX Global Call covers the main talking points from a news meeting involving DJ FX Trader editors in New York, London and Singapore, as well as other FX hot spots when warranted.

So, Mr. Carney, Hawk or Dove?
Now the world's financial analysts have got over their shock at the appointment of Canadian central bank chief Mark Carney to the 120th governorship of the Bank of England, they are, inevitably, all turning ornithologist and trying to work out whether the new bird will wear the plumage of hawk or dove once he's in his London nest.

Battling Rebels, Syria Flattens 'Slums'
In Syria, a government slum-clearance program appears to have a political motive: isolate neighborhoods sympathetic to Syria's armed insurrection, and then obliterate them.

Georgia Will Stay Democratic, Says Outgoing Leader
Georgia's outgoing president said the recent arrests of his allies is a sign the new government is "flexing its muscles," but that pressure from Georgians would prevent the country from slipping back from democracy.

Greek Deal Lifts Most Asian Shares
Asian markets were mostly higher Tuesday after euro-zone finance ministers reached a deal to release the next tranche of bailout funds to Greece, while shares in mainland China dropped to their lowest level since January 2009. Shanghai ended down 1.3%.

Opposition Seeks Australia Bond Register
In response to Azerbaijan buying Australian government bonds, shadow treasurer Joe Hockey has renewed his call for a detailed register to identify the individual foreign holders of the resource-rich country's debt.

Greek Deal Spurs Modest Rally in Euro-Zone Bonds
Traders in euro-zone government bond markets breathe a sigh of relief after Greece's creditors strike a deal to cut the country's debt pile and unlock its next tranche of assistance, giving a boost to the region's riskier bonds.

India Gold Demand Likely Higher
Gold demand in top buyer India is expected to rise as much as 23% from a previous estimate due to a revival in purchases during the festive season and signs of a revival in economic growth, a senior industry executive said.

Australian Dollar Up on Greece Deal
An agreement among euro-zone countries to ease Greece's debt burden sent the Australian dollar higher Tuesday, though analysts said the improved sentiment may not last long.

RBI Assures Steps if Cash Shortage Persists
India's central bank will take steps to improve the availability of cash in the banking system if the current liquidity shortage persists, Deputy Governor H.R. Khan said.

Indian Rupee Gains on Moody's
The Indian rupee rose against the U.S. dollar in opening trade Tuesday after ratings firm Moody's Investor Service reiterated its stable outlook on India's sovereign rating.

China Data Add to Evidence of Recovery
Profit at major Chinese industrial enterprises grew at a surprisingly strong rate in October as margins expanded, adding to evidence that the world's second-largest economy is recovering.

The Secret Powers of the Son-in-Law
If you have prickly relations with your in-laws, new research offers some surprising insights into the risks and benefits of maintaining your distance from your spouse's parents.
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